Signing a new IT deal - the calm before the plunge

Tom Paye |
Aug. 21, 2013

Now, more than ever, it's advisable to test the waters before diving straight into a big contract.

When these goals are met, and both sides of the contract see the benefits, they're likely to want to continue doing business. Indeed, both parties will want to be more accommodating towards each other in order to get projects done promptly and to a high standard. That's how Hani Khanfer, Channel and Pre-Sales Coordinator, Smartworld, sees things anyway.

"Success within a partnership or the achievement of common goals can play a major role in the move to strengthen and reinforce good relations between the two parties," he told CNME earlier this year. "With goals obtained, both parties will now look into maintaining the partnership so that gaining benefits and rewards will remain continuous."

But what if the partnership does go sour? Is there anything that an IT manager can do upon finding out that a project is not going to be completed ether on time or to budget? Indeed, is there any way that he can avoid being suspended like the unfortunate IT head at the BBC? According to Golkar, it depends on the original contract, and whether or not either party has an exit strategy built into it.

"[Breaking a partnership] typically depends on the construct of the contractual agreement between the partners. An exit strategy or provision in partnership agreements with obligations for smooth transition has been practiced for centuries — the IT industry should be no exception to this practice," he says.

However, some believe that there is no easy way to go about geting out of a contract, even if relations do go sour. Berner, for example, when speaking about maintaining relations to CNMEearlier this year, said that, for this very reason, it was important to ensure everything is in order before signing.

"Really, is this an option?" he asked. "I don't think so. Do your due-diligence before signing, highlight the risks and if you can accept them than go and sign the document. If not then it is better not to sign at all."

It rather depends on who you speak to, then, but one thing is for sure — it's definitely advisable to complete a proper due-diligence before signing a large contract. Doing just a little bit of homework could mean a lucky escape for an IT manager's career or even a company's reputation. As the old adage goes, look before you leap.